The Canadian Privacy Law Blog: Developments in privacy law and writings of a Canadian privacy lawyer, containing information related to the Personal Information Protection and Electronic Documents Act (aka PIPEDA) and other Canadian and international laws.

Monday, June 20, 2005

According to the New York Times, the company at the centre of the latest privacy scandal, Cardsystems, wasn't supposed to be keeping the information that was compromised. And, to compound issues, the information was not encrypted.

I've mentioned in a previous post that the card issuers may be unfairly tarred in this whole incident. The media are starting to place the blame on the third party processors, though the headlines scream out "MASTERCARD!". The electronic payments system relies upon third party processors, otherwise you would have seven terminals at each point of sale, which would be unworkable.

The NYTimes article refers to an audit, which the company passed. Perhaps the auditors need to be asked some questions.

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This web site is presented for informational purposes only. These materials do not constitute legal advice and do not create a solicitor-client relationship between you and David T.S. Fraser. If you are seeking specific advice related to Canadian privacy law or PIPEDA, contact the author, David T.S. Fraser.